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How to assess the impact e-tolling will have on your organisation

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Gauteng road tolling is a certainty, organisational preparedness is not

The numerous benefits of Gauteng Road Tolling will no doubt be realised with an associated cost in that individuals and business will soon start to feel the impact of this cash outflow. In short, Gauteng road tolling is expected to place a significant financial burden on both organisations and individuals.

In a Deloitte Remuneration survey 63% of participant organisations stated that they are still to investigate the impact this will have on their employees and whether they will compensate employees for this cost. Furthermore, based on our ongoing client interactions in the market, we are also aware that several organisations have not yet assessed the impact further tolls could have on their distribution network and operating margins.

Without having visibility of this impact, numerous organisations have not yet decided what proportion of costs will be absorbed through their operating margin, what costs will be passed on to customers and what proportion of costs will be accepted from their suppliers.

Organisations need to assess how the business will be impacted by E-Tolling and craft strategies to minimise the negative effects on profitability and employee productivity

Road tax represents a significant change for both the organisation and employee. Understanding the quantitative and qualitative impact of this road tax on your organisation will ensure you are prepared to design and implement appropriate mitigating actions for both internal and external stakeholders.

Organisations need to identify . . . . Click here to download the article

For a more detailed discussion on e-tolling, how it will affect your business and how you can prepare for the impact of e-tolling, contact Chad Schaefer at chschaefer@deloitte.co.za or Clinton Houston at clhouston@deloitte.co.za

 

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David Graham

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